Bitcoin News

QuadrigaCX mistakenly loses another $500K in Bitcoin

QuadrigaCX, Canadian crypto exchange which owes customers $250 million in CAD ($190 million U.S.) in cryptocurrencies and fiat, have recently again lost an additional $500,000 CAD by mistake.

In an early report available on Quadriga’s development after it filed for creditor defense in late January, court-appointed monitor Ernst and Young (EY) stated that the firm inadvertently transferred more than 100 bitcoins into a cold storage wallet that could not have any access.

The report stated that:

The report stated that

As per this report, it has even taken control of many Quadriga electronic devices supposedly possessed or used by CEO Gerald Cotten in the Quadriga operation, such as four cell phones, laptops as well as three encrypted USB keys.

Such devices are being kept in a protection payment box EY borrowed while its scientific group controls the best next steps to try to contact them.

Quadriga revealed in a previous court filing that it owed its clienteles $180 million CAD ($137 million USD) in crypto assets, however, it did not offer a failure between the funds kept in hot wallets and those that were kept in the cold storage.

The report even mentioned that it was working with some third-party expense computers to solve the exchange’s fiat stabilities, as it has not made any practical development to date.

The Ontario Securities Commission had even recently stated to a news website that agreed on the impending harm to Ontario investors, we are observing into this matter and have previously been in contact with the monitor. OSC orator Kristen Rose allegedly dropped to say whether this means the Commission was formally investigating the exchange.

Quadriga has not been able to access its cold wallets where it kept most of the assets, because Cotten was purportedly solely responsible for the wallets and corresponding keys. Cold wallets are storage systems for digital assets which are not connected to the Internet, which prevents users from being hacked. The exchange purportedly only has CA$375,000 ($286,000) in cash, while it owes CA$260 million ($198,435,000) to its users.QuadrigaCX users have retained lawyers to instigate proceedings to receive their funds, however noting that the court has given the exchange a 30-day stay to prevent lawsuits during this time.CBC’s the reporter also adds that QuadrigaCX has asked for a 30-day stay of proceedings — which will end on Mar. 7 — to search for the $190 million that is apparently inaccessible following Cotten’s death.

The news comes in the wake of the British Columbia Securities Commission’s claim that it does not regulate QuadrigaCX since the company has reportedly not shown signs of trading of securities or derivatives, or working as an exchange in general. The aforementioned harm purportedly refers to the exchange’s missing funds in the amount of CA$190 million dollars ($145 million) in digital assets discovered after the death of QuadrigaCX’s founder Gerald Cotten in December.

Paul Jolin

Paul Jolin is an economist having experience in financial research. He joined CoinNewsSpan in 2017 and since then has been working with the team to offer best price analysis and review stories on the crypto space. He is optimistic about blockchain technology's use cases in terms of financial freedom. He also has experience as an independent trader.

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